A review of the Ontario Power Authority's (OPA) recent
announcements and initiatives, along with their broad implications,
highlights evolving opportunities across the Ontario landscape.
These initiatives are also indicative of the vast complexity for
stakeholders, from policy makers to developers to technology
companies throughout the renewable energy value chain. A few
program developments show both robustness in the market and a
change in direction.
As of September 30, 2013, the OPA had 10,560 MW of renewable
energy supply contracted in Ontario, with 52% of it under
development and 48% in commercial operation. While projects under
development represent about $20B in investment, much of it targeted
for spending over the next several years, incremental contracted
capacity in the 18 months prior to the Q3 report was reported to be
only 154 MW. This indicates significant market activity while also
highlighting the need for next generation policy and program
The OPA's new and evolving competitive process to procure
large renewable (>500kW) contracts proposes to enhance regional
planning, Aboriginal incentives, community engagement / acceptance
and municipal site and land use control. A requirement for more
engagement and inclusiveness embedded in the competitive process
will trigger innovation and responsiveness from renewable project
The good news is that Aboriginal and municipal / community groups
are increasingly participating in renewable generation; the OPA has
contracted inclusive developments of 1,910 MW with a portfolio
value of about $12B. Participation levels will naturally and
rightfully increase with time.
Another change in direction is the recent announcement of a joint,
two-phase procurement process for 50MW of energy storage with the
Independent Electricity System Operator (IESO). This procurement
will spur the advancement of battery, flywheel and other storage
technology innovation in Canada.
In addition, on March 31, 2014, the Ministry of Energy also issued
a directive to support achievement of the provincial conservation
and demand management (CDM) goal to save 30 TWh of energy by 2032.
The Ministry forecasts that 7 TWh needs to be achieved between 2015
and 2020, and has requested the OPA coordinate, support and fund
the delivery of CDM programs through distributors to achieve this
2020 target reduction.
While there are significant opportunities for sustainable
investments and businesses, new procurement processes and increased
expectations for partnerships and community engagement will add to
the complexity of operating in the Ontario market. Ontario has
forged a path, and the lessons learned while navigating
complexities will provide strong insights for other Canadian
jurisdictions as they continue development of renewable energy
MNP is pleased to be a founding sponsor for the inaugural
All-Energy Canada Exhibition and Conference at the Exhibition Place
in Toronto, April 9-10, 2014. Visit MNP's Power Lounge at Booth
415 to learn more about how we can help put the power back in your
hands. The tradeshow portion of this event is free to attend. For a
listing of our presentations please visit http://ongta.mnpevents.ca/all-energy-tradeshow/
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).